Comments on: Counterparties http://blogs.reuters.com/felix-salmon/2009/10/09/counterparties-18/ A slice of lime in the soda Sat, 25 May 2013 16:48:33 +0000 hourly 1 http://wordpress.org/?v=3.4.2 By: David Teicher @Aerocles http://blogs.reuters.com/felix-salmon/2009/10/09/counterparties-18/comment-page-1/#comment-7756 David Teicher @Aerocles Fri, 09 Oct 2009 16:00:49 +0000 http://blogs.reuters.com/felix-salmon/2009/10/09/counterparties-18/#comment-7756 I actually just posted a poll asking people Did Obama Really Deserve To Win The Nobel Peace Prize? Most Have Said No So Far... http://aerocles.wordpress.com/2009/10/09/did-obama-deserve-the-nobel-prize-do-you-retweet-links-before-clicking-them/ I actually just posted a poll asking people Did Obama Really Deserve To Win The Nobel Peace Prize? Most Have Said No So Far…
http://aerocles.wordpress.com/2009/10/09  /did-obama-deserve-the-nobel-prize-do-y ou-retweet-links-before-clicking-them/

]]> By: Sandrew http://blogs.reuters.com/felix-salmon/2009/10/09/counterparties-18/comment-page-1/#comment-7755 Sandrew Fri, 09 Oct 2009 15:56:45 +0000 http://blogs.reuters.com/felix-salmon/2009/10/09/counterparties-18/#comment-7755 I don't work in insurance, but I appreciate your distinction between propitious selection describing buyers' behavior and "skimming the cream" describing the behavior of insurers seeking to capitalize thereon. On a side note, I'd be curious to learn how much adverse/propitious selection influences insurance marketing strategies. E.g. Do auto insurers advertise higher rates in places like auto body shops, MTV, NASCAR, and AARP Magazine; and lower rates in places like, say, Parenting Magazine or in close proximity to wherever MADD holds their meetings? Is this a novel idea or are the decision makers already keenly aware of these things? I don’t work in insurance, but I appreciate your distinction between propitious selection describing buyers’ behavior and “skimming the cream” describing the behavior of insurers seeking to capitalize thereon.

On a side note, I’d be curious to learn how much adverse/propitious selection influences insurance marketing strategies. E.g. Do auto insurers advertise higher rates in places like auto body shops, MTV, NASCAR, and AARP Magazine; and lower rates in places like, say, Parenting Magazine or in close proximity to wherever MADD holds their meetings? Is this a novel idea or are the decision makers already keenly aware of these things?

]]> By: Drew Drytellar http://blogs.reuters.com/felix-salmon/2009/10/09/counterparties-18/comment-page-1/#comment-7752 Drew Drytellar Fri, 09 Oct 2009 14:09:23 +0000 http://blogs.reuters.com/felix-salmon/2009/10/09/counterparties-18/#comment-7752 That's a great term, Sandrew. I work in insurance though I hadn't heard it. From look it up it does seem to be more the opposite of adverse selection. Instead of high risks being more likely to buy insurance, with "propitious selection" it seems like low risks are more likely to purchase. 'Skimming the cream', as I understand it, refers the insurance company's own efforts to identify low risks. Is that how you understand the distinction? Of course, I'm sure the boundaries between the two terms is fairly blurry. That’s a great term, Sandrew. I work in insurance though I hadn’t heard it. From look it up it does seem to be more the opposite of adverse selection. Instead of high risks being more likely to buy insurance, with “propitious selection” it seems like low risks are more likely to purchase. ‘Skimming the cream’, as I understand it, refers the insurance company’s own efforts to identify low risks. Is that how you understand the distinction? Of course, I’m sure the boundaries between the two terms is fairly blurry.

]]> By: Sandrew http://blogs.reuters.com/felix-salmon/2009/10/09/counterparties-18/comment-page-1/#comment-7750 Sandrew Fri, 09 Oct 2009 13:49:26 +0000 http://blogs.reuters.com/felix-salmon/2009/10/09/counterparties-18/#comment-7750 I prefer the term propitious selection myself. I prefer the term propitious selection myself.

]]> By: Drew Drytellar http://blogs.reuters.com/felix-salmon/2009/10/09/counterparties-18/comment-page-1/#comment-7748 Drew Drytellar Fri, 09 Oct 2009 13:03:17 +0000 http://blogs.reuters.com/felix-salmon/2009/10/09/counterparties-18/#comment-7748 For the record, in the insurance industry the opposite of adverse selection is "skimming the cream." For the record, in the insurance industry the opposite of adverse selection is “skimming the cream.”

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